NBR Nudges Toward Next-Gen Tax Transparency
“The proposal to directly link online income tax returns with banks has been made solely for the convenience of taxpayers. No NBR official will be able to access a taxpayer’s personal bank information. Therefore, there is no reason for concern,” assured National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan.
He made the remarks on Wednesday, September 10, at the Meet the Business seminar held at the Revenue Building in Agargaon, Dhaka.
The NBR chief explained that on August 14, a letter was sent to Bangladesh Bank and the Finance Division proposing the integration of taxpayer account balances, interest earnings, and tax deducted at source into the online return system in real time. While questions have been raised in some quarters, he reassured that taxpayers’ data privacy would remain fully protected.
Khan said, “We are trying to coordinate with commercial banks so that taxpayers do not have to repeatedly collect and submit account statements. No NBR official will be able to view taxpayers’ bank information.”
He emphasized that the move aims to eliminate hassles for taxpayers and would not affect deposits, banking transactions, or confidence in the financial system.
On corporate taxation, the NBR chairman noted, “The corporate tax rate has been gradually reduced to the current 20 percent. Corporate returns will also be enabled for online submission in the future. The government’s goal is to encourage businesses to invest more easily.”
Addressing notices to taxpayers, he clarified, “Issuing notices to TIN holders is not harassment. Problems will be resolved once returns are filed. Audits will be conducted on a random basis, and in the case of companies, at least one in three new files will be subject to audit.”
Turning to VAT, Khan stated that rates may be rationalized and unified into a single rate if necessary. He pointed out that despite an 83 percent VAT imposed on the tobacco sector, a significant portion continues to be evaded. “In the past year, evidence of massive VAT evasion was found in 3,000 audits. That is why we want to implement a QR code–based system to automate VAT collection,” he said.
Calling on businesses, Khan urged, “Everyone must step forward in paying VAT and taxes through digital systems. This will make business easier and ensure transparency.”
He further added, “We have seen many objections regarding VAT rates. If needed, we will reduce them. VAT will be a single rate. We want digitalization. We want to build the software.”
